Britons’ inflation expectations for the coming year slowed in May, the quarterly Bank of England/TNS Inflation Attitudes Survey showed Friday.
Respondents forecast inflation to slow to 2.9 percent in the coming year compared to 3 percent projected in February. Expected inflation for the twelve months after that decreased to 1.9 percent from 2.9 percent.
Median expectations for inflation in the longer-term, say in five years’ time fell to 2.6 percent from 3.4 percent.
The survey showed that 55 percent of respondents thought the 2 percent inflation target was ‘about right’, up from 52 percent in February. The proportions saying the target was ‘too high’ or ‘too low’ were 33 percent and 12 percent, respectively.
When asked about the future path of interest rates, 39 percent said they expected rates to stay about the same over the coming year, compared with 29 percent in February.
About 42 percent of respondents expected rates to rise over the next 12 months, up from 39 percent in February.
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